Owing to the lack of water resources, Singapore has been buying water from Malaysia. In 1998, Malaysia representatives discussed this issue with Singapore President Wu Zhuo Dong during the ASEAN annual meeting, hoping for a new round of negotiation. Wu agreed and organized the so-called four-eye meeting between Mahathir and Lee in 2000 and 2001 in Putrajaya. The two sides discussed in details about various issues and made important agreements on several issues. Malaysia agreed to stick to the current contract under 2061 and would continue to supply water to Singapore with a 15-fold increase in price. But after several communications between the two governments, the new agreement was declared void. Both the Singapore and Malaysia governments were once optimistic about making a new agreement. The objective of this thesis is to explain why the two governments are willing to negotiate but has not come up with a long-lasting agreement.
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